What is Dash
Dash (DASH) is a fully-featured, peer-to-peer, open source and fully decentralized cryptocurrency, with multiple unique features like instant transfer and private transfer. Dash is also the first fully decentralized autonomous cryptocurrency organization, in that it provides software mechanisms for self-maintenance. It is one of the first privacy-centric cryptocurrencies: unlike bitcoin, senders have the option to anonymize themselves during a transaction.
History of Dash
Dash was originally developed by programmer Evan Duffield in January 2014 as Xcoin. Shortly after, in February 2014, it was renamed Darkcoin (DRK). In March 2015, it was re-branded as Dash, an abbreviation of Digital Cash, in an attempt to distance itself from the growing negative connotations of the dark markets. Nearly 2 million Dash coins were mined within the first 2 days of its launch, which was attributed to an error in programming. However, the alternative proposals were disapproved by the community and the coin continued as originally designed. In May 2017, DASH surpassed the billion-dollar market cap mark and is currently one of the top 20 biggest cryptocurrencies. Dash also has one of the largest active communities in cryptocurrency, with a very active official forum on bitcointalk.
How Dash Works
Dash is a peer-to-peer cryptocurrency which allows DASH transfer between two users. When a sender initiates a transfer, they mention the receiver’s wallet address and the amount of DASH to be transferred. This information is then processed by miners and masternodes on the network who approve (or disapprove) it. Once it is approved, the amount of Dash is transferred from the sender’s account to the receiver’s account. During special transactions like InstaSend and PrivateSend, the process is followed with user-initiated modifications.
Dash was proposed with several advantages over bitcoin:
- PrivateSend: PrivateSend is a specialized service from Dash which allows users to send instant payments to receivers without revealing any personally identifiable information. PrivateSend an in-network mixing service to obfuscate the tracing of the parties involved.
- InstaSend: InstaSend allows users to transact in real-time. The transaction is verified by a consensus of masternodes, and if no consensus is reached, Dash allows the transaction to take place through the regular block validation method of bitcoin. This serves to eliminate the “Double Spend” attack risk from the network.
- Dedicated, Two-Tier Nodes: Unlike bitcoin where the miners do everything blockchain-related, Dash has two tiers of nodes where the miners perform tasks like creating a block or approving a transaction, and masternodes which take care of the special services such as InstaSend and PrivateSend. Thus, the specialized services do not bog the network down with congestion.
- Ultra Safe: Dash places utmost importance of security of the network and consequently the wealth of the users. It uses more than 4,000 servers around the world and 1,000 Gigahash of X11 ASIC computing security in order to help mitigate the chance of a “51-percent attack.”
- Large Network: Dash is one of the fastest growing peer-to-peer cryptocurrency networks. This allows for enhanced security as transactions need to ‘convince’ more nodes that a transaction is valid. It also means users can send Dash from anywhere in the world with very little computing power.